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Apple Reportedly In Talks to Acquire Perplexity AI Amid Investors’ Lawsuit & Push for Own Search Engine

Apple Reportedly In Talks to Acquire Perplexity AI Amid Investors’ Lawsuit & Push for Own Search Engine

Apple is reportedly in early internal talks about acquiring Perplexity AI—a fast-growing AI-powered search startup—as part of its broader, increasingly urgent push into artificial intelligence.

According to Bloomberg, the discussions have taken place among top Apple executives, including Adrian Perica, Apple’s head of mergers and acquisitions, services SVP Eddy Cue, and other decision-makers leading the company’s AI efforts.

The move—still in its formative stages with no formal offer yet made to Perplexity—comes as Apple faces mounting pressure from investors and the broader tech industry to move more decisively into the AI race. It also follows a shareholder lawsuit that accuses the company of overstating its AI capabilities, a claim that triggered a staggering $900 billion loss in market value earlier this year.

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The potential Perplexity deal would represent a rare pivot for Apple, which is known for building technology in-house rather than acquiring external firms. The last major purchase of this magnitude was its $3 billion acquisition of Beats Electronics in 2014. An outright acquisition of Perplexity, reportedly valued at about $14 billion, would easily eclipse that deal.

However, Apple’s options appear to be narrowing. While the company has been quietly integrating AI into its devices and services, it has fallen behind in the generative AI arms race dominated by OpenAI, Google, Meta, and even smaller disruptors like Anthropic and Mistral. Analysts have increasingly called on the company to consider bold moves—including acquisitions—to close the gap.

What Apple Wants from Perplexity

Perplexity AI, a startup positioning itself as the next-generation answer engine, uses large language models to provide citation-backed, real-time search results. Apple has reportedly discussed not only acquiring the company but also forming a strategic partnership. That could involve integrating Perplexity’s AI technology into Safari and Siri, dramatically reshaping the user search experience across Apple’s ecosystem.

According to Bloomberg, Apple has met with Perplexity several times in recent months and even explored a Safari integration—something Eddy Cue revealed during his testimony in the ongoing antitrust lawsuit against Google. Cue’s appearance underscored the stakes of Apple’s current deal with Google, which pays Apple roughly $20 billion a year to remain the default search engine on iPhones and Safari browsers.

But that partnership is now under legal scrutiny, and if regulators force Apple to unwind it, the company will need a robust, independent search engine of its own. That’s where Perplexity could become a critical asset—not just as a product, but as a source of high-end AI talent.

AI Talent War Intensifies

Apple, like its rivals, is deeply engaged in the ongoing war for AI talent. According to reports, it is even competing against Meta to hire Daniel Gross, co-founder of Safe Superintelligence Inc. and a former partner at Y Combinator. This signals Apple’s intent to shore up its AI leadership, especially after internal delays and public setbacks.

Earlier this year, the company postponed a major upgrade to Siri, part of its new “Apple Intelligence” suite, citing performance and integration challenges. The delay rattled investors and added to the perception that Apple was lagging in AI innovation.

The urgency behind Apple’s AI efforts has been amplified by a shareholder lawsuit filed on Friday, accusing the company of misleading investors by overstating the readiness and capabilities of its AI systems.

The lawsuit has brought further attention to Apple’s cautious AI strategy, which contrasts sharply with the aggressive rollout seen by rivals like Microsoft and Google. While Apple maintains a strong reputation for privacy and quality control, many believe that its secrecy and conservatism have left it vulnerable in an era defined by open innovation and rapid iteration.

Perplexity As A Key Piece of the Puzzle

Founded in 2022, Perplexity has quickly gained attention for offering a user-friendly, answer-focused alternative to traditional search engines. Its conversational interface, supported by citation-backed answers and updated with real-time data, sets it apart from competitors. The company recently raised $500 million in new funding, bringing its valuation to $14 billion.

Currently, Apple’s talks with Perplexity remain exploratory. But even the consideration of such a bold move suggests a major strategic inflection point in Cupertino. After years of AI hesitation, Apple appears ready to respond to investor pressure and industry momentum.

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